money economics/can be part of study guide

A currency's exchange rate is 1)how many denominations the currency has. 2)its stable rate as established by the government. 3)how easily it can be divided into other currencies. 4)its changing value relative to other currencies.

What would happen if currency in all countries had fewer denominations? 1)People would be more likely to confuse the value of currencies. 2)Exchanging money between countries would be much easier. 3)People could not charge as many different prices for goods. 4)All goods would be more expensive than they currently are.

A currency is a system of money created and used by 1)an individual or a group of people. 2)all people who live in the same era. 3)a nation or region of the world. 4)a town, city, or state within a region.

What might cause a change in the value of fiat money? 1)a change in the value of commodities 2)a change in government regulations 3)a change in materials used to make money 4)a change in individuals' spending habits

How is using money related to bartering? 1)It is a substitute for bartering. 2)It is the opposite of bartering. 3)It is a newer form of bartering. 4)It is an old form of bartering.

The term liquidity refers to 1)how quickly money can be exchanged. 2)the true monetary value of an investment. 3)the shifting supply of money in the economy. 4)how much wealth an individual has amassed.

What gives commodity money its value? 1)a government's guarantee of its value 2)the type of material with which it is made 3)its rate of exchange in other countries 4)the ability to trade it for a valuable good

Which is an example of a demand account? 1-savings account 2-investment account 3-credit account 4-checking account

Exchange rates can indicate economic health by 1-showing exactly how much of each nation's currency is liquid. 2-revealing how much of each nation's income goes to savings. 3-showing the relative strength of different nations' currencies. 4-examining spending patterns across nations and continents.

What kind of money is a gold certificate considered to be? 1-commodity 2-fiat 3-representative 4-currency

When might it be important to know a currency's exchange rate?

to barter means to

What is one problem that might commonly occur when one is bartering?

What would happen if currency in all countries had fewer denominations? People would be more likely to confuse the value of currencies. Exchanging money between countries would be much easier. People could not charge as many different prices for goods. All goods would be more expensive than they currently are.

What is true of representative money? Check all that apply. It can be exchanged for a valuable good. It was once the most common form of money. It was used in systems involving a "gold standard." It can be traded for a commodity such as silver. It is made with precious metals or stones.

What types of money are included in the M2 category?